Breaking: US Government Eyes Ripple’s XRP Escrow for National Reserve – Truth or FUD?
Rumors swirl as speculation mounts—could the US really seize Ripple’s XRP escrow to bolster its reserves?
Here’s what we know (and what’s pure crypto-twitter noise).
The Escrow Elephant in the Room
Ripple’s locked-up XRP has always been a lightning rod for drama. Now, whispers of government intervention are sending shockwaves through the market.
Legal Realities vs. Crypto Fantasies
Experts weigh in on whether the feds could—or would—attempt such a move. Spoiler: it’d make the SEC lawsuit look like a parking ticket.
One hedge fund manager quipped: ‘If they try this, they’ll need an escrow account just for the lawsuits.’
What’s Next for XRP?
Price action stays volatile as traders gamble on regulatory outcomes—because nothing says ‘sound investment strategy’ like betting against the US government.
One thing’s certain: in crypto, the only reserve requirement is for drama.
John Squire tweeting the Rumor | Source: X
The released XRP, which was distributed in three tranches of 500 million, 300 million, and 200 million tokens, is valued at over $2.2 billion at current market prices.
Even though Ripple unlocks XRP from escrow regularly, the timing of this release made people wonder if the U.S. government might be interested in it.
The XRP escrow system was designed by Ripple to manage the token’s supply and ensure market stability. Usually, about 1 billion XRP is unlocked monthly, with any unused amount returned to escrow.
This system is meant to keep the XRP market steady and help people trust its liquidity. Since the escrow holds a significant portion of XRP’s total supply, some think the U.S. might see it as a strategic asset for future financial systems or cross-border payment systems. However, Attorney Bill Morgan shut down the rumor with a clear answer: “No, it won’t.”
At the same time, there are also rumors that the Federal Reserve is using XRP in its new payment service called FedNow. Some users online said it’s already happening. But there is no official word from the Federal Reserve to confirm it.
Although Ripple’s blockchain has been integrated into FedNow through Volante Technologies for cross-border settlement solutions, no official confirmation has been made that XRP itself is in use.
Adding fuel to the fire, earlier this year, President Donald Trump talked about possibly creating a national crypto reserve that might include altcoins like XRP, Solana (SOL), and Cardano (ADA). However, only a reserve that focuses on Bitcoin has been created so far.
On top of that, Ripple’s long legal fight with the SEC might end soon, and XRP’s regulatory status is getting clearer. That has made people even more curious.
Also Read: Ripple SEC Lawsuit Verdict Won’t Wait Until August, Here’s the Timeline
